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Value Chain Analysis of Rural Tourism in Mtskheta-Mtianeti Region

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Value Chain Analysis of Rural Tourism in Mtskheta-Mtianeti Region Value Chain Analysis of Rural Tourism in Mtskheta-Mtianeti Region Research Organic Agriculture and Rural Tourism Development in Mtskheta-Mtianeti Region Value Chain Analysis of Rural Tourism Implemented by Biological Farming Association ELKANA Funded by Austrian Development Cooperation Research Conducted by PMC Research Project Director Giorgi Khishtovani Researchers: Salome Solomnishvili Sopho Basilidze (Team Leader) Mariam Kobalia (Gender Expert) TBILISI, 2020 CONTENTS 1. INTRODUCTION ................................................................................................................................................ 3 2. RESEARCH METHODOLOGY ......................................................................................................................... 4 3. GRID MAP – RURAL TOURISM VALUE CHAIN ACTORS ....................................................................... 5 4. TOURISTS IN THE TARGET AREAS ............................................................................................................... 6 5. TOURIST LOCATIONS AND ASSETS ............................................................................................................ 8 6. TOURS AND GUIDES ........................................................................................................................................ 10 7. TRANSPORTATION ............................................................................................................................................ 10 8. ACCOMMODATION UNITS ............................................................................................................................ 11 9. SOUVENIRS/CRAFTS ........................................................................................................................................ 18 10. FOOD ..................................................................................................................................................................... 18 11. ENTERTAINMENT ............................................................................................................................................... 19 12. EXTERNAL STAKEHOLDERS .......................................................................................................................... 20 13. SWOT ANALYSIS ................................................................................................................................................ 22 14. RECOMMENDATIONS ...................................................................................................................................... 23 GLOSSARY ARDA - Agricultural and Rural Development Agency GEOSTAT - National Statistics Office of Georgia RT - Rural Tourism VC - Value Chain VCA - Value Chain Analysis 1. INTRODUCTION The Project “Organic Agriculture and Rural Tourism Development in Mtskheta-Mtianeti Region” is im- plemented by Biological Farming Association ELKANA and funded by the Austrian Development Co- operation. It is carried out in two geographic areas – Tianeti Municipality and Lower Pshavi area (Du- sheti Municipality) of Mtskheta-Mtianeti region. The overall objective of the project is to create economic opportunities for men and women in deprived rural areas with high potential for sustainable tourism and organic agricultural development. By focusing on generating economic opportunities in these two sectors, the expected impact of the project is to reduce poverty through sustainable local economic development in the Mtskheta-Mtianeti region. One of the components of the project is to support rural households in target areas to improve their agricultural practices and start sustainable local development initiatives. The project will develop the capacities of target groups by organizing training courses, consultations, and study visits for farmers and businesses. One activity of the project was to conduct mapping of rural tourism sector in target areas, focusing on the following issues: y Understand the market system for rural tourism (RT) y Identify opportunities for green growth within these sectors in the project areas y Understand the challenges and potentials for vulnerable population y Develop recommendations for the project to ensure maximum benefit of the poor and vulnerable groups as well as the environment; these recommendations to be in line with national develop- ment plans and commitments To achieve the project objectives PMC Research conducted a mapping of rural tourism sector. 3 2. RESEARCH METHODOLOGY For the Rural Tourism Value Chain Analysis in target areas Tianeti Municipality and Lower Pshavi, the desk and field research studies were conducted. 2.1 DESK RESEARCH The first phase was the diversity sensitive mapping of tourist sector service providers – existing accom- modation units, food service places, transportation services, entertainment, and souvenir production. In addition, the main tourism assets of the target areas were identified. This was accomplished by con- ducting online desk research, review of the documents provided by Elkana, analysis of the data from National Statistics Office of Georgia and Georgian National Tourism Administration. 2.2 FIELD RESEARCH After desk research was done, in the next stage, a questionnaire was developed to better understand the existing services in the target areas, types of visitors and problems of the guesthouses. This was followed by the interviews with guesthouse owners. The questionnaire was diversity sensitive and included questions capturing differences and relations, division of labor and roles, practical needs of diverse groups (women, youth, PWDs, etc.), access, control, and benefit of resources. In total, 9 phone interviews were conducted (for detailed information see Annex 4: RT Value Chain). The research team could not identify any PWDs involved in tourism in Tianeti Municipality. The results of the mapping and information gathered from the questionnaires have been combined in this report. Table 1: List of interviews conducted NUMBER OF VALUE CHAIN VALUE CHAIN ACTOR MALE FEMALE INTERVIEWS Tourism Accommodation 8 3 5 Tourism Souvenir production 1 0 1 Tourism Food Place 1 1 0 Tourism Guides 1 0 1 Tourism Tianeti Municipality -Local government 1 1 0 This chapter on mapping of rural tourism in Tianeti Municipality and Lower Pshavi provides informa- tion about main tourism trends, their travel patterns and motivations in the region. It also gives infor- mation about the number of guesthouses, their provided services, conditions of their facilities, their problems, prices and incomes. The report also discusses other players in the local rural tourism chain; it concludes with SWOT analysis of the sector and recommendations for improvement. 2.3 RESEARCH LIMITATIONS The given study has several limitations: y There is incomplete statistical information on the municipality and community level in Georgia. y Due to COVID- 19, the Government of Georgia announced the state of emergency during March- May 2020, therefore the research team was unable to conduct face to face in-depth interviews, as planned. Instead, the phone interviews were conducted. However, this did not have a negative impact on the research process due to value chain participants’ high motivation and willingness to provide information about their activities. 4 3. GRID MAP – RURAL TOURISM VALUE CHAIN ACTORS The following diagram shows rural tourism value chain in target regions. Rular Tourism Value Chain in Target Regions Internal Actors External Actors Phase - Regional Information Water bike Consultation Centers Horse renting Bicycle renting ment renting Entertain ARDA Restaurants/ Local farmers Cafes diners Food kiosks Food Enterprise Georgia Craft producers Donors Souvenir production Financial Institutions - Guesthouses Camping places Cottages dation Accomo Sectoral Associations - Public transport Own vehicles tation Certification Agencies Transpor Guesthouses VET Institutions Car renting offering tours Holiday Planning Diagram 1: Rural Tourism Value Chain in target regions Source: Field research 5 4. TOURISTS IN THE TARGET AREAS Mtskheta-Mtianeti is a popular destination among both international and domestic visitors. The num- ber of international visitors was increasing each year during 2015-2018, while in 2019 the number of tourists in the first 3 quarters slightly decreased compared to the same period of 2018. The most popu- lar destinations within the region are Kazbegi and Mtskheta historical sights. The data for international visits is not available separately for Lower Pshavi and Tianeti Municipality.1 Table 2: Number of International Visitors 2019 International Visitors 2015 2016 2017 2018 (3 quarters) Mtskheta-Mtianeti 515,812 729,091 1,093,786 1,348,046 997,619 Mtskheta (Svetitskhoveli, Jvari Monastery, 241,204 256,589 411,481 686,898 385,375 Armazi Castle, Samtavro, Pompei Bridge, etc.) Kazbegi (Gergeti Trinity Church, etc.) 256,200 437,014 465,329 619,581 493,165 Gudauri 94,350 144,661 339,146 340,552 277,764 Ananuri (Church, Jinvali reservoir, etc.) 73,556 93,654 94,922 124,343 95,670 Shatili and Mutso 6,216 8,474 10,301 2,609 5,839 Source: GeoStat As for the number of domestic visitors, a significant trend cannot be observed for the Mtskheta-Mtiane- ti region – the number has been around 700,000-800,000 visitors per year in 2015-2019. It is important to note that the number of domestic visitors in the first 3 quarters of 2019 compared to the same period in 2018 has increased by 29% in the region
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